Title
Bulk Hot Mix Asphalt (HMA) Purchase - Proposal
History
Public Works is responsible for completing right-of-way asphalt patching repairs during the spring and summer seasons. As part of this restoration and repair process and prior to the start of construction season, Public Works solicits asphalt vendors for competitive prices to purchase bulk Hot Mix Asphalt (HMA). Asphalt vendors generally cannot guarantee cost past a single construction season due to the uncertainty and volatility of fuel, oil and raw material costs. A majority of the asphalt work that is performed in the Village requires both a binder course and a surface course of asphalt. Because these are two entirely different mixes of asphalt, two different and separate deliveries are required.
As a cost control measure to eliminate delivery and freight charges, Village trucks travel to the asphalt plant and the truck is loaded with HMA. The truck then transports the material to the respective work sites. There are three critical factors that the Village has to consider when selecting vendors: (1) plant proximity, (2) plant HMA type production schedule, (3) plant HMA availability.
Plant proximity and travel time to Orland Park is important because asphalt needs to be applied at the highest temperature possible to properly perform the repair work. Longer travel times from the asphalt plant can significantly lower the product’s temperature, increasing the possibility of unusable loads. HMA plants may halt production of a particular type of mix based on demand. The Village may need binder HMA, but our selected plant may switch to produce surface course. This change would delay repair projects in the Village. Plants may also run out of a needed HMA type due to large order obligations to larger entities.
To plan for these external factors and to minimize repair delays, staff is requesting approval to purchase from multiple locations as needed. Staff solicited and received proposals from three (3) vendors in our general area: Crowley-Sheppard Asphalt, of Chicago Ridge, IL, D-Construction of Coal City, IL and K-5 Construction Corp. of Lemont, IL. All HMA product proposals are (N50) IDOT Certified Mixes. It is anticipated that the total costs of HMA will approximate $15,000 - $20,000 this year.
Costs
Crowley-Sheppard submitted a fixed cost for 2016 of $45.00 per ton for binder material and $52.00 per ton for surface product. D-Construction provided a cost (through July) of $39.00 per ton for binder and $45.50 for surface product. K-5 Construction submitted costs (through July) of $43.00 for binder material and $44.75 for surface product.
On May 2, 2016, this item was reviewed and approved by the Public Works Committee and referred to the Board for approval.
Financial Impact
Funds to cover the cost for HMA during the 2016 season are available in 031-6007-462800; 010-5002-462800 and 031-6002-462800.
Recommended Action/Motion
I move to approve accepting the proposals from D-Construction of Coal City, IL, Crowley-Sheppard Asphalt, of Chicago Ridge, IL and K-5 Construction Corporation of Lemont, IL., for the purchase of bulk material asphalt for the 2016 construction season as needed at a cost not to exceed the budgeted amounts.